Commercial Lease Drafting / Review

Service description

Commercial lease counsel drafts a new lease or reviews one a landlord has proposed, then negotiates the terms that carry the most long-term cost — base rent and escalations, common-area maintenance charges, renewal options, and the conditions for exiting early. The goal is a lease that matches how the business actually expects to use and eventually leave the space.

Common industries

Any business signing or renewing a lease for physical space.

ROI

A few negotiated clauses can outweigh the fee many times over across a multi-year lease; pairs naturally with a real-estate move.

Benefit

Draft or review a commercial lease and negotiate the terms that actually cost you — renewal, escalations, CAM, exit.

Why get it

A commercial lease is a long-term, largely fixed commitment; a clause a business doesn't notice at signing — an uncapped CAM charge, a weak exit right — can cost far more than the lease payments over its term.

When you benefit

Typically once per lease — at signing, at renewal, or when negotiating an early exit or expansion.

What it costs

Usually a flat fee for a standard lease review, higher for a full negotiation.

When you pay

Commonly billed at completion of the review or negotiation; a longer negotiation with multiple rounds of changes may instead be billed hourly, with the business notified before costs exceed the original estimate.

Other costs

None beyond the fee itself, unless the business also wants a broker or a space planner to weigh in on the terms being negotiated.

Risks to know

An uncapped or vaguely defined CAM charge, a weak or missing exit right, and an unfavorable renewal or escalation clause are the most common ways a lease costs more than expected. A personal guarantee buried in the signature block can also extend liability beyond the entity signing the lease.

When risks arise

Lease terms are locked in at signing and are difficult or expensive to renegotiate mid-term, so the terms most worth pushing on are the ones easiest to fix before the lease is signed.

The process

Counsel reviews the proposed lease or drafts one from the business's terms, flags the clauses that carry the most cost or risk, and negotiates changes with the landlord's counsel. The business reviews the final terms and signs once the negotiated changes are incorporated into the lease.

Your commitment

The business shares the landlord's proposed lease or the space it wants under lease, along with how it plans to use the space and how long it expects to stay. It should flag any planned buildout, subleasing, or expansion so those terms are negotiated up front rather than added later.

Documents to gather

• The landlord's proposed lease, or the space listing if none has been drafted yet
• How the business plans to use the space, including any buildout or signage needs
• Expected timeline — how long the business expects to stay, and any planned expansion

Helpful reading

• lease — Cornell Law School, Legal Information Institute (Wex)
• Small Business Lease Negotiation Workshop — Transactional Law Clinics, Harvard Law School